Commenting after the Scottish Manufactured Exports Estimates for the first quarter of 2007 were published, showing a slight growth in the country’s manufactured exports, Mather said: "The modest growth in manufactured exports since 2004 should not hide the fact that the Scottish economy is underperforming.

"There are some positive signs in the latest figures. Some of the smaller exporting sectors such as textiles, have grown strongly over the first quarter of 2007 and other industries, in particular metal products, have also shown strong growth over the year. However, this government recognises that we must do more to give Scotland a competitive edge.”

The statistics released today show that Scottish manufacturing exports have experienced modest growth in the first quarter of 2007, 0.4 per cent, and annual growth in real terms of 2.4 per cent since the first quarter of 2006.

The industries which showed the greatest gains in the first quarter were wood, paper and publishing (18.2 per cent), closely followed by food and tobacco (12.0 per cent), textiles (12.3 per cent) and mechanical engineering (1.7 per cent).

Industries showing strong annual growth were drink and metals at 4.3 and 22.5 per cent respectively, while there has been consistent modest growth in the manufacturing sector since 2004. However, despite its gains in the first quarter, over the year, wood, paper and publishing declined by 11.2 per cent.

Between 1995 and 2004 there was a dramatic rise and subsequent collapse in manufacturing exports, due to the electrical and instrument engineering sector which grew by 124.5 per cent between 1995 and 2000 and then fell by 65.9 per cent between 2000 and 2004. 

Mather continued: "While we have to accept that emerging markets in the Far East and Eastern Europe will provide ever tougher competition, there is far more we can and will do to improve Scottish economic performance.

"Our overarching aim is increased and sustainable economic growth. We must aspire to the kind of performance we see in countries such as Ireland, Norway and Iceland – the arc of prosperity that surround us.

"Policies such as reducing and removing business rates, refocusing and reforming the Enterprise Networks and creating new, vocational opportunities for young people will help us achieve this goal.

"Statistics like these make me even more determined to push ahead with this agenda and end years of underperformance."